Post acquisition distributor due diligence
Our Fortune 500 medical technology client made a major acquisition of a life sciences company. As part of the acquisition, the client required the target company to conduct full due diligence on 300 distributors, mitigate any identified red flags and report results to the board in a very short timeframe.
The client engaged us for several facets of the project including:
- aligning the target company’s needs with the client’s overall due diligence programme
- determining appropriate levels of due diligence for each distributor
- sending questionnaires to all the distributors and tracking completion
- reviewing reports and questionnaires for red flags
- providing alerts and metrics to the client
- advising on appropriate follow-up steps to mitigate red flags.
The target company engaged us to provide a combination of services.
Managed due diligence services
- Sending questionnaires to all 300 distributors, and tracking progress of their completion, requiring constant reminders and chasing to get the profiles completed by the distributors
- Reviewing the submitted questionnaires and addressing any immediate issues or concerns around completion
- Ordering due diligence reports based on the risk-rating model we developed and coordinating our global research teams to produce the reports in different countries around the world
- Analysing the reports and providing alerts to the client around specific distributors, red flags and the best way to move through the identified red flags
- Assembling metrics based on the project for presentation to the board by the target company
Risk rating and categorisation
- Risk rating each third party against a number of key factors that aimed to focus the right attention on the third parties that were the highest risk
- Recommending appropriate levels of due diligence and providing advice on red flags discovered through due diligence and the best way forward to work with this distributor
With our support, the target company finished its screening project ahead of schedule and successfully integrated its distributor base into the client’s channel.
- Full consolidated report summarising the project's findings, with a full suite of recommendations and guidance on how to remediate identified issues.
- Individual due diligence reports on all 300 distributors across over 20 countries.